If a building has been empty for 10 or more continuous years and was previously residential, it can qualify for the VAT431C DIY conversion scheme under the 'long-empty' route — despite its former residential use. Contractor services should be charged at 5% VAT. Materials purchased directly at 20% are fully reclaimable. You must provide evidence of the 10-year empty period to HMRC. Submit within 6 months of your completion certificate.
The 10-year empty period is a strict HMRC threshold. A property empty for 9 years and 11 months does not qualify. Evidence of the empty period — council tax exemption records, utility disconnection history, planning records — is critical to supporting the claim.
A building that has not been used as a dwelling for 10 or more continuous years before the conversion works begin qualifies under Notice 708 Section 7. The 10-year period is measured from the last residential occupation.
A previously residential property empty for less than 10 years does not qualify for VAT431C. Renovation of a recently empty property is subject to standard-rate VAT and is not reclaimable via the DIY scheme.
HMRC will require evidence of the 10-year empty period: council tax records, electoral roll absence, utility disconnection records, planning history, or local authority empty homes register. Gather this documentation early.
Once the 10-year qualifying period is established, building services should be charged at the 5% reduced rate — the same as other qualifying conversions. The long-empty route follows the same VAT rules as a commercial-to-residential conversion.
VATBuild is not affiliated with HMRC. References to HMRC publications are for informational purposes. Always consult a qualified tax adviser before submitting a reclaim.
VATBuild supports the long-empty VAT431C route. During project setup, it asks about the property's empty period and flags if the 10-year threshold may not be met — before you commit time to a claim that HMRC would reject. It checks contractor invoice rates, tracks the completion certificate deadline, and generates a structured claim summary with the empty-period evidence requirements clearly noted.